IPOVIEW-Colfax IPO may lack Visa's appeal but promising

By Paritosh Bansal

NEW YORK, May 2 (Reuters) - Colfax Corp (CFX.N: Quote, Profile, Research, Stock Buzz), which makes pumps and other fluid handling products, may not have the appeal of Visa Inc (V.N: Quote, Profile, Research, Stock Buzz) for investors, but it could hold its own in a lackluster market for initial public offerings.

Colfax, which is expected to price its offering of 18.75 million shares next week, is geographically diverse and has been growing steadily, making it an attractive long-term investment, IPO experts say.

But they add that the business lacks the "sex appeal" for investors to sit up and take notice in a market undermined by the credit crisis.

The Richmond, Virginia-based company makes pumps, fluid handling systems and specialty valves that are used in sectors such as oil and gas and power generation.

It sells products under some of the oldest brands in a fragmented global fluid handling industry, which is populated by more than 10,000 companies. Its Allweiler brand dates back to 1860.

"It's a quiet, boring, fundamentally strong business," said Ben Holmes, publisher of Morningnotes.com, an independent research company. "These are equipment and parts and systems that most people will never encounter in their lifetime, but they make the world go round."

EXIT FOR SHAREHOLDERS

Colfax, which will list on the New York Stock Exchange under the symbol "CFX," expects its shares to price between $15 and $17 per share.